Pohang in North Gyeongsang Province, Ulsan, and Seosan in South Chungcheong Province have been newly designated as specialized regions for distributed energy, the Ministry of Climate, Energy and Environment said on Wednesday, reports The Chosun Daily.
The ministry said the decision was made after a re-review at the 37th meeting of the Energy Committee. With the addition of these three areas, the total number of distributed energy special zones has risen to seven, including four regions designated earlier.
The distributed energy special zone system, introduced this year, allows designated regions to both generate and sell electricity, an activity normally restricted under the Electric Utility Act. Under this framework, local businesses can buy power directly from nearby power plants at mutually agreed prices, rather than relying on electricity transmitted over long distances through Korea Electric Power Corporation’s grid.
The system is aimed at easing pressure on the national power grid, lowering electricity costs for industries, and supporting regional economic growth by encouraging electricity production and consumption within the same area.
The Energy Committee had earlier designated Uiwang in Gyeonggi Province, Busan, Yeongam in South Jeolla Province, and Jeju as the first group of special zones during deliberations held early last month. Decisions on Pohang, Ulsan, and Seosan were postponed at the time. A government official said the additional designations were made after local governments revised and clarified their long-term plans for using renewable energy.
Under the updated plans, North Gyeongsang Province will supply carbon-free electricity to nearby secondary battery manufacturers using a 40-megawatt fuel cell power plant that will run on green ammonia produced from renewable energy.
Ulsan plans to provide stable and reasonably priced electricity to local petrochemical companies, SK facilities, and Amazon’s artificial intelligence data centres through a 300-megawatt liquefied natural gas combined-cycle power plant. The city also plans to gradually increase the supply of carbon-free electricity using renewable energy and green hydrogen, in line with national policy.
Seosan will supply electricity directly to nearby petrochemical complexes using an LNG combined-cycle power plant. Part of the revenue generated from electricity sales will be used to support solar power installations and upgrade transformers in surrounding villages.
The ministry said it will regularly monitor the progress of projects in the designated zones and continue efforts to encourage the shift of power demand from the capital region to other parts of the country.
